Since several companies in the list reported their earnings in the June quarter, some of the confusion about the results is rapidly diminishing. Although growth in revenue in Q1 was surely hit, operating profit wasn’t so badly hit as expected on the street due to strong cost cuts. The baselines were far fatter than the forecast for most companies.
Markets are now expected to turn to global economic data and coronavirus vaccine inventions. Moreover, the US-China Trade Review Agreement, a key global event, was postponed for Saturday. So nervousness about the already sour relationship between the US and China will likely weigh up the feelings of investors.
Moreover, there is likely to be caution in mood among world equity investors as confusion continues over US stimulus. However, the protocol for the meeting of the Federal Reserve held in July this week will be written. The main topic of recent meetings is Key Ministers of OPEC+, which will meet online to review strategies for poor conformity.
It remains to be seen if the central bank holds a status quo even in its October political meeting with industry data and inflation that offer conflicting signals. The minutes released on Thursday by the Reserve Bank of India would be important as the RBI sets the line between the monetary stimulus and the currency support.
Weak IIP and core sector data are expected to bring down the 2020-21 gross domestic product in the first quarter of the month-end.
While the price of gold and silver in the Indian markets has drowning sharply and has tracked limited world rates, precious metals have lost some of their shine. The optimistic details about the vaccine for corona proved to be a rise for precious metal bulls. Throughout this week’s domestic market, gold and silver prices decreased by 5 and 8 percent respectively.
And because we track globally closely, the future stimulus package projects in the United States will also be subject to trade tensions between the US and China.
Next week, the resilience of bank stocks will be tested for the stock markets. The new turnaround window allows banking firms to offer loans to businesses that are under stress due to the pandemic Covid-19.
However, this pandemic-polluted year the Nifty Bank index well underscored the broader market. While the Nifty 50, which is about 8 percent below its peak, is 33 percent below bank Nifty. In the broader market, much of the takeoff is now dependent on financial stocks, which account for more than 35 percent of the frontline index weighting.